CIT (E) v United Way of Baroda (2020) 423 ITR 596 (Guj. HC)

Assessee association was engaged in organizing the event of Garba during the Navratri festival and was registered under section 12A of the Act and claimed exemption under section 11 of the Act. Revenue rejected the claim on the ground that income from selling passes and renting of food stalls cannot be said to be the activity for advancement of any other of general public utility as per section2(15) of the Act r.w.s 13(8) of the Act. Hon. Gujrat High Court held that as the major object of assesse society is mobilizing resources from the local communities and the people having affiliation and concern for India in general, and Gujrat in particular, residing in India or abroad and to apply them for strengthening the services in education, health and human care and other social sectors existing in Baroda and State of Gujrat, and there is also no dispute that considerable work in this area has been carried out in this area, genuineness of this object cannot be doubted. Also, nothing therefore, really turns on the Garba event being organized on the basis of commercial principles. Hence provisions of section 2(15) cannot be invoked.